Clear Debt Now

Written by admin on September 29th, 2008

When The Credit Card Buys Groceries??

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The credit card is a common occurrence in many American homes. Those who do not have at least one credit card are met with awe and trepidation. After all, there has to be some reason why they don’t have a credit card.

Many justify owning credit cards in case of emergency situations such as car repairs, sickness, and occasionally a new dress or high powered toy. The recent credit crunch has revealed that many card holders are incurring debt through their credit cards at an amazing rate which does not seem to be slowing done.  ?

The average credit card debt for families is around $8,000 with the actual amount of overall debt being far higher due to mortgages, auto loans, and other sources of debts. Borrowers continue to default on payments yet they are still using credit cards for expenses. A recent trend in credit card spending has hit the grocery store.

Many advisors have coined the term “Survival Debt” to describe how families are now using plastic to pay for essentials like fruits, vegetables, and other food items. Card holders are slow to realize the pitfalls of using credit to buy groceries but after interest, fees, and other added expenses that $80 grocery bill may double at the end of the month.

With the job market suffering and the cost of food raising many shoppers feel that they have little to no choice if they want to keep meals on the table.

Other Survival Debt items include rent, bills, and even mortgages. Putting such items on credit cards will be very costly in the end especially if you miss a payment or fail to pay more then the minimum requirement.

The trend of Survival Debt is not slowing down and many credit card companies are recognizing the potential of this type of expense offering incentives for groceries placed on cards.

Experts advise against using credit cards unless it is absolutely necessary but they do realize that such Survival Debt just may be necessary in this time of financial hardship

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2. Should You Use A Loan To Pay Off Credit Card Debt?
3. Debt Educator Announces a Bailout for Credit Card Debt
4. Credit Card Debt Becoming Big Problem
5. Deal with Tough Finances Directly